Itochu (ITOCY) AI Stock Analysis

• Market Cap: $99.86B
• Dividend Yield: 2.16%
• Average Volume (3M): 1.33K
• Price to Earnings (P/E): 72.2
• Beta (1Y): 0.42
• Revenue Growth: 1.68%
• EPS Growth: 16.99%
• Country: US
• Employees: 115,089
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): N/A
• Shares Outstanding: 7,924,447,800
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,334
• PEG Ratio: 1.00
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 12.95
• Enterprise Value/Market Cap: 178.56
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 7.34
• Enterprise Value/Ebitda: 16.27
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: $14.50 ▲(14.62% Upside)

Itochu's overall stock score reflects a stable financial performance with strong profitability margins and manageable leverage. Technical analysis indicates a neutral to slightly positive outlook, while valuation metrics suggest the stock is reasonably priced with a decent dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Diversified trading and operating model

ITOCHU’s multi-segment sogo shosha model spreads revenue across trading, owned operating companies, and equity-method investees. This durable diversification reduces single-market shocks, supports cross‑sector deal flow, and provides multiple cash generation channels over the medium term.

Solid return on equity and manageable leverage

A 16% ROE with moderate leverage (D/E ~0.75) indicates efficient capital deployment without excessive financial risk. This combination supports sustainable shareholder returns and gives the firm flexibility to finance investments or weather cyclical downturns over the next several quarters.

Healthy operating margins

Consistently double‑digit gross margins and mid-single-digit net margins reflect structural cost control and value-added trading and operating businesses. These margins provide a buffer against cyclical revenue swings and support long‑run profitability from core operations.

Negative Factors

Significant revenue decline

A roughly 25% revenue drop signals material demand or portfolio shifts that can depress scale economies and reduce recurring earnings. If sustained, lower revenue can erode operating leverage, constrain reinvestment, and pressure margins and cash generation over the medium term.

Declining free cash flow growth and weak OCF conversion

A 41% fall in FCF growth and OCF covering only ~22% of net income point to weaker cash conversion. Persistent cash flow deterioration limits dividend and buyback flexibility, raises refinancing risk, and constrains capital deployment for projects or M&A over the coming quarters.

Earnings sensitivity to commodity and FX cycles

Significant exposure to commodities and resource projects makes earnings structurally sensitive to price, volume and FX swings. This cyclical volatility can produce uneven cash flows and investment returns, complicating planning and increasing downside risk across multi‑year horizons.

Itochu Business Overview & Revenue Model

Company Description

ITOCHU Corporation trades and imports/exports various products worldwide. The Textile segment produces and sells raw materials, threads, and textiles; and garments, home furnishings, and industrial materials. Its Machinery segment engages in the plants, bridges, railways, and other infrastructure; power generation, transmission, transformation, and electricity sale; water, environment and waste-related; trading of ships, aircraft, automobiles, construction and industrial machinery, machine tools, environmental equipment, electronic devices, and related equipment; renewable and alternative energy; and waste recycling businesses. The Metals & Minerals segment develops metal and mineral resource; processes steel products; trades iron ore, coal, pig iron and ferrous raw materials, non-ferrous and light metals, steel products, nuclear fuels, and greenhouse gas emissions; and recycles and waste treatment activities. Its Energy & Chemicals segment trades in crude oil, petroleum product, LPG, LNG, natural gas, hydrogen, organic and inorganic chemicals, functional food, synthetic resins, semiconductors, packaging materials, fine chemicals, pharmaceuticals, and electronic materials, as well as engages in the solar and biomass power generation, electricity trading, and the energy storage cell businesses. The Food segment produces, distributes, and retails food products. Its General Products & Realty segment produces and sells paper, pulp, natural rubber, tire, and building products and materials; develops, sells, leases, and operates real estate properties, such as housing, logistics facilities, and other projects; and offers logistics services. The ICT & Financial Business segment offers IT, Internet related and venture capital; distributes mobile telephone devices; and BPO, medical and healthcare, space/ satellite, IP content, digital marketing, and financial, reinsurance, and insurance brokerage services. The company was founded in 1858 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Itochu generates revenue through multiple streams, primarily by acting as an intermediary in international trade, selling products sourced from manufacturers to customers worldwide. The company earns income from its trading operations, which include the import and export of goods across various sectors. Additionally, Itochu invests in joint ventures and partnerships that allow it to participate in resource development, such as energy and mining projects. Significant revenue also comes from its retail operations, where it sells consumer goods directly to the public. The company benefits from strategic alliances with both domestic and international firms, enhancing its product offerings and market position. Furthermore, Itochu's investment activities, including private equity and venture capital, contribute to its earnings, leveraging its extensive network to identify and capitalize on lucrative opportunities.

Itochu Financial Statement Overview

Summary

Itochu's financial performance is stable with strong profitability margins despite a 25% revenue decline. The balance sheet shows manageable leverage with a debt-to-equity ratio of 0.75 and a return on equity of 16.13%. However, the cash flow statement reveals a significant decline in free cash flow growth, which could impact future financial flexibility.

Income Statement

Itochu's income statement shows a mixed performance. The TTM data reveals a significant revenue decline of approximately 25%, which is a concern. However, the company maintains a healthy gross profit margin of 16.48% and a net profit margin of 6.42%, indicating efficient cost management. The EBIT and EBITDA margins are also reasonable at 6.81% and 9.91%, respectively, suggesting stable operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio of 0.75 indicates a manageable level of leverage, which is a positive sign. Return on equity stands at 16.13%, showcasing effective utilization of shareholder funds. However, the equity ratio is not explicitly calculated, but the overall leverage appears stable, balancing risk and growth potential.

Cash Flow

Cash flow analysis highlights some concerns with a significant decline in free cash flow growth by 41.1% in the TTM period. The operating cash flow to net income ratio is 0.22, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is strong at 78.50%, suggesting good cash conversion from profits, but the declining trend in free cash flow growth warrants attention.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.75T	14.72T	14.03T	13.95T	12.29T	10.36T
Gross Profit	2.43T	2.38T	2.23T	2.13T	1.94T	1.78T
EBITDA	1.10T	1.71T	1.29T	1.25T	1.28T	968.57B
Net Income	945.86B	880.25B	801.77B	800.52B	820.27B	401.43B
Balance Sheet
Total Assets	105.54B	15.13T	14.49T	13.11T	12.15T	11.18T
Cash, Cash Equivalents and Short-Term Investments	4.24B	636.91B	689.06B	688.80B	724.83B	598.88B
Total Debt	4.55T	4.62T	4.40T	4.01T	3.92T	4.22T
Total Liabilities	8.96T	8.84T	8.50T	7.65T	7.39T	7.31T
Stockholders Equity	41.04B	5.76T	5.43T	4.82T	4.20T	3.32T
Cash Flow
Free Cash Flow	788.94B	769.81B	775.56B	743.98B	644.02B	730.88B
Operating Cash Flow	1.04T	997.28B	978.11B	938.06B	801.16B	895.90B
Investing Cash Flow	-435.62B	-516.27B	-205.99B	-453.81B	38.64B	-207.30B
Financing Cash Flow	-620.49B	-525.00B	-801.17B	-500.08B	-846.71B	-728.77B

Itochu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITOCY, the sentiment is Positive. The current price of 12.65 is below the 20-day moving average (MA) of 12.87, above the 50-day MA of 12.34, and above the 200-day MA of 11.09, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 24.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITOCY.

Itochu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HON	75 Outperform	$140.41B	23.33	35.85%	2.24%	7.48%	9.55%
ITOCY	70 Neutral	$99.86B	72.20	15.80%	2.16%	1.68%	16.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMM	53 Neutral	$84.74B	27.11	75.68%	1.82%	-13.09%	-20.63%